Economic, social and environmental impacts of the liquorice production in the Republic of Karakalpakstan (Uzbekistan)

Abstract

Liquorice (or licorice) root is becoming more competitive in the global commodity market. Liquorice is used in many areas of production, and it is gaining popularity in new fields. It is widely used in food production, cosmetics, medicine, light and heavy industries. Liquorice grows in abundance in the northwest of Uzbekistan. In Uzbekistan, farmers collect wild liquorice plants and sell liquorice roots to liquorice processing companies. The leaves and stems of liquorice are utilized as livestock forage.

It is proven that liquorice production is beneficial for Uzbekistan in three ways: ecological, economical and social. In the light of environmental problems in Uzbekistan as Aral Sea drought, soil salinity, climate change, sandstorms and water shortage, producing liquorice has a primary role in mitigating harsh side effects of ecological severities. It is considered to be a low-cost land rehabilitation option. Liquorice is a good alternative cash crop for low-income farmers in rural areas

Companies involved in the liquorice production can create more than 1000 new job places for Uzbek population. It is proposed that liquorice growing would contribute to sustainable development of the region in the long run.

Uzbekistan possesses all prerequisites needed for cultivation of liquorice. They include favorable conditions for liquorice growing, processing and exportation. The liquorice production has many perspectives in Uzbekistan. It is expected to become one of the main exporting products of the Republic of Karakalpakstan.

The Uzbek government facilitates the production of liquorice in the Republic Karakalpakstan. The Cabinet of Ministers of the Republic of Uzbekistan issued two resolutions which provide the establishment of plantations for the production of liquorice in the Republic of Karakalpakstan for 2017-2021, and the development of the liquorice production sector by all means. The producers engaged in cultivation of liquorice in plantations are exempted from dozens of fees, taxes and payments for 5 years. Besides, credits with four-year grace period will be offered to the producers who want to create industrial plantations and the enterprises, engaged in the industrial processing of liquorice. These measures are expected to bring the production of liquorice in Karakalpakstan to a new level.

The thesis paper focuses on social, economic and environmental impacts of the liquorice production in the Republic of Karakalpakstan (Uzbekistan). Liquorice cultivation has a lot of positive impacts. To begin with, it can restore degraded soil of the Republic of Karakalpakstan. From an economic point of view, due to increasing demand and price for liquorice an expansion of liquorice production would provide farmers and entrepreneurs with considerable income. The liquorice production will indirectly trigger the development of road infrastructure in rural areas. Finally, it will lead to a drop in unemployment and poverty rates of the Karakalpak population.